ch05Tariffs(国际经济学-(By Robert J. Carbaugh).pptVIP

Carbaugh, Chap. 5 International EconomicsBy Robert J. Carbaugh9th Edition Chapter 5: Tariffs Why restrict trade? Benefits of free trade come in the long term, and are usually spread widely across society Costs of free trade are felt rapidly and are usually concentrated in specific sectors of the economy Defining tariffs A tariff is a tax (duty) levied on products as they move between nations Import tariff - levied on imports Export tariff - levied on exported goods as they leave the country Protective tariff - designed to insulate domestic producers from competition Revenue tariff - intended to raise funds for the government budget (no longer important in industrial countries) Types of tariff Specific tariff Fixed monetary fee per unit of the product Ad valorem tariff Levied as a percentage of the value of the product Compound tariff A combination of the above, often levied on finished goods whose components are also subject to tariff if imported separately Effective rate of protection The impact of a tariff is often different from its stated amount The effective tariff rate measures the total increase in domestic production that the tariff makes possible, compared to free trade Domestic producers may use imported inputs or intermediate goods subject to various tariffs, which affects the calculation Effective rate of protection (cont’d) When tariff rates are low on raw materials and components, but high on finished goods, the effective tariff rate on finished goods is actually much higher than it appears from the nominal rate This is referred to as tariff escalation Avoiding and postponing tariffs (US) Production sharing and special treatment for foreign assembly using domestic components Bonded warehouses Foreign trade zones Tariff welfare effects Consumer surplus The difference between the price buyers would be willing to pay and what they actually pay Producer surplus The revenue producers receive above the minimum amount required to induce them to produce a go